While corporate interest in Bitcoin has increased recently in the cryptocurrency market, altcoins have been losing power. CryptoQuant CEO Ki Young Ju emphasized that institutional investors are turning to Bitcoin through the ETF (Exchange-Traded Fund) channel, and this has long-term effects on the price. On the other hand, the purchasing desire of domestic players of the crypto ecosystem has declined.
Institutional investors took the leading role in Bitcoin purchases
Following the approval of spot Bitcoin ETFs in the USA in early 2024, the traditional financial world began to show intense interest in the Bitcoin market. Bitcoin purchases came to the fore, especially through pension funds, brokerage firms and large asset managers. Thanks to this development, while the amount of Bitcoin held in ETFs increased, BTC reserves in crypto exchanges tended to decrease in the same period.
CryptoQuant CEO Ki Young Ju said, “While ETFs in the traditional financial market are painting a positive picture, stocks on crypto exchanges appear to be weakening. If the domestic players of the crypto ecosystem are not on the buying side, who will shape the market?” He drew attention to the transformation with his words.
In this new period, pension funds, independent financial advisors and large corporate actors began to determine the pricing of Bitcoin. These institutional investors, who act with high volume and long-term thinking, follow a different line compared to the short-term speculative transactions of retail users.
Thus, while a stable demand is ensured through the “ETF line”, the Bitcoin price generally manages to remain resilient. This institutional channel in 2024 makes clear that liquidity in the Bitcoin market does not come only from crypto-specific sources.
Mini dictionary: ETF (Exchange Traded Fund) are financial products that offer investors an easy and transparent investment opportunity through the stock market by monitoring the price of a specific asset group or a single asset. Thanks to ETFs in crypto, investors can own a security indexed to the underlying asset instead of buying Bitcoin directly.
Demand in altcoins is weakening
While Bitcoin maintains its strong position with institutional investors, altcoins are under pressure due to the loss of interest from domestic crypto investors. According to the latest data, while BTC dominance continues at high levels throughout 2025, Ethereum’s performance against Bitcoin has fallen short of market expectations. Total trading volume on centralized exchanges also decreased towards the end of the year.
Looking at the data on blockchain, there is a distinct cooling in appetite from retail and crypto-specific buyers. With the decrease in speculative purchases in altcoins, investors tended to keep their portfolios in Bitcoin, which they saw as more reliable.
The basis of the divergence between Bitcoin and altcoins lies in the concentration of capital in BTC and a few large assets. While altcoins have seen strong cyclical demand in the past, this trend has weakened.
Despite the institutionalized Bitcoin market, altcoins still remain heavily dependent on the internal liquidity of the crypto community. This table shows that two demand ecosystems are formed between Bitcoin and the rest of the market, with two-way and different dynamics.
| Presence | Demand Source | 2024–2025 Performance |
|---|---|---|
| Bitcoin | Institutional & Crypto native | Price and demand are resistant, ETF inflows are high |
| altcoins | Crypto native & Retail | Decrease in demand, low volume |
Demand balance is changing in the crypto market
In general, Bitcoin has created a new demand channel with fresh resources provided by traditional finance. There was a significant liquidity gap in altcoins. The market continues to evolve from internal cyclical movements to external institutional flows. The fact that Bitcoin has two different and independent demand dynamics also affects the balance of power in the market.
